Bangladesh does not yet have suf?cient geological evidence to conclusively classify its offshore territory in the Bay of Bengal as a hydrocarbon-rich province by global standards. However, the geological and geophysical data already available should be systematically analyzed, reprocessed, and packaged to present a compelling investment case to international oil companies (IOCs). At the same time, policymakers must recognize that offshore oil and gas exploration is a capital-intensive, highrisk undertaking that requires advanced technology, specialized expertise, and substantial ?nancial resources.
as a result, there is no realistic alternative to attracting foreign investment and international expertise if Bangladesh hopes to unlock the hydrocarbon potential of its offshore areas.
in an interview with Mollah Amzad Hossain, Editor of Energy and Power, Professor Dr. Md.
anwar Hossain Bhuiyan, Department of Geology at the University of Dhaka, shared his views on Bangladesh’s Offshore Bidding Round 2026. Bangladesh has formally launched the Offshore Bidding Round 2026 following the ?nalization of the Offshore Model PSC 2026. How do you assess the country’s preparations to attract investment for offshore oil and gas exploration? There is no alternative to exploring, developing, and utilizing domestic energy resources if Bangladesh is to ensure long-term energy security. From that perspective, the launch of the Offshore Bidding Round 2026 is a welcome initiative. However, Bangladesh has fallen signi?cantly behind in offshore exploration.
a bidding round was previously announced in 2024 under a model PSC developed with the support of international consultants.
although seven IOCs purchased bid documents, none submitted bids due largely to the changed political environment at the time.
the Ministry of Power, Energy, and Mineral Resources subsequently reviewed the reasons behind the lack of participation. Based on those ?ndings, Petrobangla updated the Offshore Model PSC 2026. From both ?nancial and technical perspectives, the revised PSC is attractive for investors. However, IOCs do not make highrisk, multi-billion-dollar offshore investments based solely on contractual terms.
a stable economic, social, and political environment is equally important.
in my view, the current government is committed to creating such an environment.
are the changes introduced in the Offshore Model PSC 2026 suf?cient to attract IOCs? The revised PSC is certainly more attractive from both commercial and technical standpoints. Gas pricing has been linked to Brent crude oil prices, while a ?oor and ceiling mechanism has been introduced to provide greater price certainty.
the PSC also allows investors to recover pipeline infrastructure costs and earn wheeling charges after a gas discovery. Furthermore, the WPPF rate has been reduced from 5 percent to 1.5 percent. Despite these improvements, there remains a signi?cant challenge. Major IOCs typically invest in offshore regions where geological evidence suggests the possibility of discovering reserves in the range of 30 to 50 trillion cubic feet (TCF).
at present, there is insuf?cient data to indicate that Bangladesh’s offshore areas contain reserves of that magnitude. Moreover, successful discoveries tend to attract additional investment. Bangladesh lacks such a landmark offshore success story.
therefore, investment risks in the country’s offshore sector remain comparatively high. Petrobangla possesses substantial offshore data, while third-party companies have also conducted 2D seismic surveys and developed data packages. What more should be done to present Bangladesh’s offshore potential effectively? Compared to onshore areas, offshore data may be limited, but it is certainly not insigni?cant.